A Quick Primer On Why Everyone Thinks The Economy Is Headed Into The Toilet Again

BusinessInside/YahooFinance ^ | 7/12/10 | Henry Blodget

[Kartographer]

Three months ago, everyone was jubilant: The economy was headed for a v-shaped recovery, job growth was kicking in, and consumers were about to start spending, spending, spending again.

But now, suddenly, everyone thinks the economy is headed back into the tank.

Aside from noting the obvious--when it comes to economics, the consensus is usually wrong--it's worth reviewing why everyone has suddenly become so pessimistic again.

[ltc8k6]

No one that I know thought any of that was true...

[IamConservative]

Cue the demand side economist like Krugman who will say: “I toild you we should have kept spending.”

[fwdude]

I feel like we have a 7-year-old driving a bus that we are all forced to ride in. It’s absolutely maddening.

[OneWingedShark]

>I looked at the 9/12 rally pictures last night...what a crowd! Didn’t have a shred of impact on the agenda. It may have shown some that they are not alone but that is about all.

The message is clear:
Until that crowd is both armed and angry Washington DC doesn’t give a shit.

[misterrob]

economic isolationism is an utter sham....

[Mojave]

Keynesian economics fails every time it is tried.

And Kenyan economics fails every time it is tried.

[ex-snook]

Employment has been heading for the tank since Clinton made trade deals with China and Bush made them a permanent trading partner. Clinton boosted the economy with the dotcom era and Bush goosed it up with a war economy.

Perot heard the trade job sucking sound in 1992 and both parties are still deaf.

The answer is obvious. PRODUCE MORE - IMPORT LESS

[SuziQ]

The “economy” is straining at the bit to grow like gangbusters , but it’ll continue to be held back by businesspeople terrified of this administration and it’s “make the rules and punishment up as you go along” approach to private sector.

Precisely! They're not in business to LOSE money!

[ThePatriotsFlag]

Darned good little “summary” primer. Well done.

[Bon mots]

Mark to Market accounting rules are going to wreak their usual havoc as well. In a move that nobody seems to notice nor care about, this simple switch will do extensive damage to any budding recovery.

Regime Change.

[LomanBill]

A$$Paper not a viable means of creating a sustainable economy... and now its all locked up? Tsk tsk.



What ~will the suuuuper genius Geckonomists pull out of the South end of their digestive tracts next?

Maybe it's time to look North of the WH, find that moral compass again - and reform Accountability into the Republic...


Oh say can you see
with your own eyes and free mind
2 miles North?

[Kartographer]

“I don’t recall everyone being jubilant about the economy 3 months ago.

I must have missed a memo.”

MSM was but then I think they were all ‘wee weeded up’ at the time.

[LomanBill]

[Until that crowd is both armed and angry Washington DC doesn’t give a shit.]

 

Fire in the Minds of Men?

 

The Marxist "revolutionaries" in control of that city would applaud if an angry mob burned it down.

 

If you want to hit them where it hurts - empty their Golden Sachs.

 

Adolph Hitler would have been powerless except for the pink NyLon clerks who Empower^(tm)ed him.

 

Thus:

It is incumbent upon the honorable craftsman to be aware
of whether or not his services are being used
as a means to accomplish evil ends -
and to ACT accordingly.

 

 

Sadly, this is not a task for a population of obese, corn-fed American Idol sheeple, who've been made slaves via the tyranny of their own appetites; who will obediently bleat their way up the ramps of the waiting box cars...  as long as the Bread and Rainbow Circuses hold out.

[Freddd]

The reason everyone is so pessimistic again..?

Look at Obama on the oil spill cleanup.

Look at Obama on Arizona.

Look at Obama’s Donald ‘Death Panel’ Berwick recess appointment.

Look at Obama.

[OneWingedShark]

>The Marxist “revolutionaries” in control of that city would applaud if an angry mob burned it down.

Maybe in principle, but I doubt they’d be applauding if they found themselves hanging from a light-post.

>If you want to hit them where it hurts - empty their Golden Sachs.

This is almost unfeasible, and certainly unreasonable (to those with families), while the government can a) take taxes out of your pay BEFORE you are ever paid, & b) reach into your savings to get monies for failure to pay income taxes. {I foresee ‘b’ being extended to any material good before they REALLY feel the squeeze.}

>It is incumbent upon the honorable craftsman to be aware
>of whether or not his services are being used
>as a means to accomplish evil ends -
>and to ACT accordingly.

Interesting you should mention that. In California the Governor has decreed that, because of the legislature’s failure to pass a budget, all state employees are to be paid the Federal Minimum Wage. Now, the State Controller is refusing to do so because the “antiquated” payroll computers cannot be easily reset to their current wage-values... therefore, being a programmer, I offered my services to the Governor/State.

{IMO, nothing will motivate government reform like lowering everyone’s salaries to the minimum wage. It will “make real” the dire financial straits that California is in — It will make it real on a PERSONAL level.}

[LomanBill]

[IMO, nothing will motivate government reform like lowering everyone’s salaries to the minimum wage]

;-}

Lower the salaries of the Golden Sachs piggys in the Federal Reserve farmhouse to minimum wage....

See how they like ~them Milk and Apples.

[LomanBill]

[I foresee ‘b’ being extended to any material good before they REALLY feel the squeeze.}]

Too big to fail? Before Citigroup got a$$paper indigestion it was trading at over 50...

So we shall see who has the motivation to endure.

"...WE PLEDGE OUR LIVES, OUR FORTUNES, AND OUR SACRED HONOR..."